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TOWN OF PEARL RIVER, LOUISIANA
Audit of Financial Statements
December 31,2011
Under provisions of state law, this report is a public document. A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropnate, at the office of theparishj:jerl^of court.
Release Date " ^ ^
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Contents Statement Schedule Page
Independent Auditor's Report 1 -2
Basic Financial Statements Government-Wide Financial Statements
Statement of Net Assets A 4 Statement of Activities B 5
Fund Financial Statements Governmental Funds
Balance Sheet C 7 Reconciliation of the Governmental Funds Balance
Sheet to the Statement of Net Assets D 8 Statement of Revenues, Expenditures and
Changes in Fund Balances E 9 Reconciliation of the Govemmental Funds Statement
of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities F 10
Proprietary Fund Statement of Net Assets G • 11 Statement of Revenues, Expenses and
Change in Net Assets H 12 Statement of Cash Flows I 13-14
Notes to Financial Statements 16-30
Required Supplemental Information Schedule of Revenues, Expenditures and Change in Fund
Balance - Budget and Actual - General Fund Schedule of Revenues, Expenditures and Change in Fund
Balance - Budget and Actual - Police Schedule of Revenues, Expenditures and Change in Fund
Balance - Budget and Actual - Street
1
2
3
32
33
34
Other Supplemental Information Schedule of Operating Expenses - Proprietary Fund 36
Schedule of Compensation Paid to the Members ofthe Board of Aldermen 37
Report on internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 38-39
Contents (Continued)
Schedule of Findings and Responses
Schedule of Prior Year Findings
Statement Schedule Page
40-41
42
_ _ . LaPortc, APAC LAx ORTE 5100 Village Walk j Suite 300
cfA* « BUSINESS ADviBORB Covmgton, LA 70433 985.892.5850 i Fax 985.892.5956
LaPor te .com
Independent Auditor's Report
To the Honorable Mayor and Members ofthe Board of Aldemien Town of Pearl River, Louisiana
We have audited the accompanying financial statements of the govemmental activities, the business-type activities, and each major fund of the Town of Pearl River, Louisiana (the Town), as of and for the year ended December 31, 2011, which collectively comprise the Town's basic financial statements as listed in the table of contents. These basic financial statements are the responsibility of the Town's management Our responsibility is to express opinions on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfomn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairiy, in all material respects, the respective financial position of the govemmental activities, the business-type activities, and each major fund of the Town of Peari River, Louisiana, as of December 31, 2011, and the respective changes in financial position and cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Govemment Auditing Standards, we have also issued our report dated June 18, 2012, on our consideration of the Town's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit perfonned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
NEW ORLEANS HOUSTON BATON ROUGE COVINGTON
An Independently Owned Member, McGladrev Alliance The M^Sodrcy AKmoo te a p n n ^ ^fiaasn ot hdepondcni acoxromg ana ca^sutdng frms. Tho MoGladray Alcnoa mmbir firms mejntoin Ihcir nomo, outcnomy and bdep«ndenco orxj, ore nsponsUe fcr thor own tibxK tec orrangomonts. cfcA/ofv oJ sorvicos iwvi mniintcnsnoo of
Management has elected not to present the management's discussion and analysis information that accounting principles generally accepted In the United States of America have determined is necessary to supplement, although not required to be a part of, the basic financial statements. Our opinions on the basic financial statements are not affected by this missing infomnation.
Accounting principles generally accepted in the United States of America require that the budgetary comparison schedules on pages 32 though 34 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB), who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the infonnation and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Peari River, Louisiana's financial statements as a whole. The accompanying other supplemental information listed in the table of contents identified as Schedule 4 and Schedule 5. is presented for purposes of additional analysis and is not a required part of the financial statements. The other supplemental infonnation is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The infomnation has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underiying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all materials respects in relation to the financial statements as a whole.
A Professional Accounting Corporation
June 18, 2012
TOWN OF PEARL RIVER, LOUISIANA Statement of Net Assets December 31, 2011
Statement A
Assets Cash and Cash Equivalents Receivables
Water and Sewer, Net Ad Valorem Taxes, Net Sales Taxes Other
Internal Balances Restricted
Cash and Cash Equivalents Bond Issuance Cost, Net of Annortization Capital Assets. Net
Total Assets
Liabilities Accounts Payable Deferred Revenue Accrued Payroll Payable from Restricted Assets
Accrued Interest Payable Revenue Bonds and Certificates - Due Within One Year
Revenue Bonds and Certificates - Due in More than One Year
Total Liabilities
Net Assets Invested in Capital Assets, Net of Related Debt Restricted for Bonds and Certificates of Indebtedness Unrestricted
Total Net Assets
Governmental Activities
$ 405,878
-144.900 87.122 50.954
275.475
--
1.013.502
1.977.831
103.737 -
38.739
--
-
142.476
1.013.502 -
821.853
$ 1.835.355
Business-Type
$
«1
Activities
621.773 .
38,574 -
10,890 -
(275.475)
308.513 6,310
4.273,516
4.984.101
18,362 35.068 2.220
5.548 126.924
173.285
361.407
4.100.231 176.041 346.422
4,622.694
Total
5 1.027.651
38.574 144,900 98,012 50.954
-
308,513 6,310
5.287,018
6.961.932
122.099 35.068 40.959
5.548 126.924
173.285
503.883
" 5.113,733 176.041
1.168.275
$ 6.458.049
The accompanying notes are an integral part of these financial statements.
TOWN OF PEARL RIVER, LOUISIANA Statement of Activities For the Year Ended December 31,2011
Statement B
Functions / Programs
Total Governmental Activities
Program Revenues Net (Expense) Revenue and
Changes in Net Assets operating Capital
Charges for Grants and Grants and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities General Govemment Public Safety Public Works Recreation
$ 575,883 818,223 582,603 56.356
$
2.033.065
$ - $ (575,883) $ 71,814 - (746,409)
148.962 (433,641) - ; (56,356)
71.814 148.962 (1.812.289)
$ (575,883) (746,409) (433,641) (56.356)
(1.812.289)
Business-Type Activities Utilities Interest on Debt
Total Business-Type ActivKies
Total
General Revenues Taxes
Ad Valorem Taxes Sales Taxes Franchise Taxes
Licenses and Permits Insurance Licenses Fines and Forfeitures Investment Eamings Other General Revenues
Special Item - Gain on Disposition of Capital Assets Transfers
Total General Revenues and Transfers
Changes In Net Assets
Net Assets, Beginning of Year
Net Assets, End of Year
656.465 3,576
660,041
$2,693,106
443,016
443,016
$ 443,016 $
-
71.814 $
19,600
19.600
168,562
-
(1,812,289)
(193,849) (3,576)
(197.425)
(197,425)
(193.849) (3,576)
(197,425)
(2,009,714)
125,521 997.680 163,775 118,963 120,350 330.202
568 10.627 5,862
55.715
1,929,263 .
116.974
1,718.381
$ 1,835,355 :
-124.715
----487
--
(55.715)
69,487
(127.938)
4.750,632
E 4.622,694
125,521 1,122,395
163.775 118,963 120,350 330,202
1,055 10,627 5.862
-
1.998,750
(10.964)
6.469,013
$6,458,049
The accompanying notes are an integral part of these financial statements.
TOWN OF PEARL RIVER, LOUISIANA Balance Sheet Governmental Funds December 31, 2011
Statement C
General Fund
Special Revenue Funds
Police Street
Total Governmental
Funds Assets
Cash and Cash Equivalents Receivables, Net
Ad Valorem Taxes Sales Taxes Other Receivables
Due from Other Funds
$ 79.109
86,283
50,954
173.826
$ 82.669 $ 244,100 $ 405,878
43,561
58,617
43,561
281,097
144,900 87.122 50,954
454,923
Total Assets $ 390,172 $ 126,230 $ 627.375 $ 1.143.777
Liabilities and Fund Balances Liabilities
Accounts Payable Accrued Payroll Due to Other Funds
64.574 8,524
110,005
7.047 24.772 69.023
32,116 5.443
420
103.737 38.739
179,448
Total Liabilities 183.103 100.842 37.979 321,924
Fund Balances Restricted Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
207.069
207.069
$ 390.172
25.388
25,388
$ 126.230 $
589,396
589,396
627,375
614,784 207.069
821,853
$ 1.143.777
The accompanying notes are an integral part of these financial statements.
TOWN OF PEARL RIVER, LOUISIANA Statement D Reconciliation ofthe Governmental Funds Balance Sheet to the Statement of Net Assets December 31, 2011
Fund Balances - Total Governmental Funds $ 821,853
Amounts reported for governmental activities in the Statement of Net Assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.
Governmental Capital Assets 2.016,997 Less: Accumulated Depreciation (1,003,495)
Net Assets of Governmental Activities $ 1,835.355
The accompanying notes are an integral part of these financial statements.
TOVVN OF PEARL RIVER, LOUISIANA Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31,2011
Statement E
General Fund
Special Revenue Funds
Police Street
Total Governmental
Funds
Revenues Taxes
Ad Valorem Taxes Sales Taxes Franchise Taxes
Grants and Reimbursements Licenses and Permits Insurance Licenses Fines and Forfeitures Interest income Other Revenues
Total Revenues
Expenditures Cun'ent
General Government Public Safety Public Works Recreation
Total Expenditures
Excess (Deficiency of Revenues Over Expenditures
Other Financing Sources (Uses) Transfers In Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
$ 75.702 $
163,775
118,963
120.350 330.202
301 3.257
812.550
546.241
498.840
71,814
16
$ 49,819 498,840
148,962
251 17,178
570.670 715.050
790.422 523.986
125.521 997,680 163,775 220,776 118.963 120,350 330.202
568 20.435
2.098,270
546.241 790.422 523,986
42.630
588,871
223,679
53,241 (203,873)
(150,632)
73.047
134.022
$ 207.069
-
790.422
(219,752)
234,402
234.402
14,650
10.738
$ 25.388 ;
-
523.986
191,064
7,528 (35.583)
(28.055)
163,009
' 426.387
$ 589.396 i
42.630
1,903,279
194.991
295,171 (239,456)
55,715
250,706
571,147
B 821.853
The accompanying notes are an integral part of these financial statements.
TOWN OF PEARL RIVER, LOUISIANA Statement F Reconciliation ofthe Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities For the Year Ended December 31,2011
Net Change in Fund Balances - Total Governmental Funds $ 250.706
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures; however, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives through depreciation expense, this is the amount by which depreciation exceeded capital outlays charged in the current period. (129,785)
The net effect of various miscellaneous transactions involving capital assets is to decrease net assets. (3,947)
Change in Net Assets of Governmental Activities $ 116,974
The accompanying notes are an integral part of these financial statements.
10
TOWN OF PEARL RIVER, LOUISIANA Statement G Statement of Net Assets Proprietary Fund December 31,2011
Assets Current Assets
Cash and Cash Equivalents $ 621,773 Receivables
Water and Sewer, Net of Allowance of $4,000 38,574 Sales Tax 10,890
Total Current Assets
Non-Current Assets Restricted Assets
Cash and Cash Equivalents
671.237
308.513
4,273.516
6,310
4,588.339
5.259,576
Capital Assets, Net of Accumulated Depreciation
Other Assets Bond Issuance Cost, Net of Amortization
Total Non-Current Assets
Total Assets
Liabilities Current Liabilities
Accounts Payable 18,362 Due to Other Funds 275,475 Accrued Salaries 2,220 Deferred Revenue 35,068 Payable from Restricted Assets
Accmed Interest Payable 5.548 Revenue Bonds and Certificates of Indebtedness 126.924
Total Current Liabilities 463,597
Non-Current Liabilities Revenue Bonds and Certificates of Indebtedness Payable 173,285
Total Liabilities 636,882
Net Assets Invested in Capital Assets, Net of Related Debt 4,100.231 Restricted for Bonds and Certificates of Indebtedness 176,041 Unrestricted Net Assets 346.422
Total Net Assets $ 4.622.694
The accompanying notes are an integral part of these financial statements.
11
TOWN OF PEARL RIVER, LOUISIANA Statement of Revenues, Expenses and Change in Net Assets Proprietary Fund For the Year Ended December 31, 2011
Statement H
Operating Revenues Service Fees Other Delinquent Fees Installation Fees Meter Fees
Total Operating Revenues
Operating Expenses Depreciation Sewer System Water System Administrative and General Amortization of Bond Issuance Cost
Total Operating Expenses
Operating Loss
Non-Operating Revenues (Expenses) Sales Tax Revenue Capital Grants Interest Income Interest on Debt
Total Non-Operating Revenues (Expenses)
Net Loss Before Transfers
Operating Transfers
Change in Net Assets
Net Assets, Beginning of Year
Net Assets, End of Year
$ 418,820 8,025 9,939 5,832
400
443.016
303,854 198,742 88,198 64.024
1.647
656,465
(213.449)
124,715 19,600
487 (3,576)
141.226
(72.223)
(55,715)
(127.938)
4.750,632
$ 4,622,694
The accompanying notes are an integral part of these financial statements.
12
TOWN OF PEARL RIVER, LOUISIANA Statement of Cash Flows Proprietary Fund For the Year Ended December 31,2011
Statement I
$ 443.629 (283,421) (126.367)
33.841
(40,496)
(40,496)
(69,453) 36.419
123.165 (122.230) (16.212)
Cash Flows from Operating Activities Receipts from Customers and Users Payments to Suppliers Payments to Employees and for Benefits
Net Cash Provided by Operating Activities
Cash Flows from Non-Capital Financing Activities Interfund Transfers and Borrowing
Net Cash Used in Non-Capital Financing Activities
Cash Flows from Capital and Related Financing Activities Purchase and Construction of Capital Assets Capital Grants Received Sales Tax Receipts Principal Paid on Capital Debt Interest Paid on Capital Debt
Net Cash Used In Capital and Related Financing Activities
Cash Flows from Investing Activities Interest Received
Net Cash Provided by investing Activities
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
Cash and Cash Equivalents Reconciliation
Unrestricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents
Cash and Cash Equivalents, End of Year
(48,311)
487
487
(54,479)
984.765
$
$
A
930.286
621.773
308,513
930.286
The accompanying notes are an integral part of these financial statements.
13
TOWN OF PEARL RIVER, LOUISIANA Statement I Statement of Cash Flows (Continued) Proprietary Fund For the Year Ended December 31, 2011
Reconciliation of Operating Loss to Net Cash Provided by Operating Activities
Operating Loss $ (213,449) Adjustments to Reconcile Operating Loss to Net Cash
Provided by Operating Activities Depreciation 303,854 Amortization of Bond Issuance Cost 1,647 Changes in Assets and Liabilities
Decrease in Receivables 1,964 Increase in Accrued Payroll 2,220 Decrease in Deferred Revenue (1,351) Decrease in Accounts Payable and Accrued Payroll (61,044)
Net Cash Provided by Operating Activities $ 33,841
The accompanying notes are an integral part of these financial statements.
14
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Introduction
Town of Pearl River, Louisiana (the Town), was incorporated in 1906. under the provisions of the Lawrason Act, LRS 33:321. The Town operates under a Mayor-Board of Aldermen form of government. The Town provides police protection, maintenance of streets, and water and sewer services.
The accounting and reporting policies of the Town conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) Is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Such accounting and reporting procedures also conform to the requirements of the Louisiana Revised Statutes and to the guides set forth in the Louisiana Governmental Audit Guide, and to the industry audit guide, Audits of State and Local Governmental Units.
Note 1. Summary of Significant Accounting Policies
Reporting Entity Section 2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards (GASB Codification) established criteria for determining the governmental reporting entity and component units that should be included with the reporting entity. For financial reporting purposes, in conformance with GASB Codification Section 2100, the Town includes all funds that are controlled by or dependent on the Town, which was determined on the basis of oversight responsibility, including accountability for fiscal and budget matters, designation and management or governing authority, and authority to issue debt. Based on these criteria, the Town has detemnined that there are no component units that are part of the reporting entity.
Government-Wide and Fund Financial Statements The govemment-wide financial statements (i.e., the Statement of Net Assets and the Statement of Changes in Net Assets) report Infonnation on all of the nonfiduciary activities of the Town; For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovemmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and the Town's proprietary funds. All individual governmental funds are reported as separate columns in the fund financial statements.
16
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability Is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the cun-ent period or soon enough thereafter to pay liabilities of the cun-ent period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Sales taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and, so, have been recognized as revenues of the current fiscal period. Ad valorem taxes are considered to be susceptible to accrual when levied. All other revenue items are considered to be measurable and available only when cash is received by the Town.
The Town reports the following major governmental funds:
General Fund - The General Fund is the general operating fund of the Town. This fund is used to account for all financial transactions and resources except those that are required to be accounted for in another fund. Revenues are derived primarily from transfers from the special revenue funds, licenses and pemiits, local taxes, fines and forfeitures, charges for service, and interest income.
Special Revenue Funds - The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than capital projects) that are legally restricted to expenditures for specific purposes. The Town's two special revenue funds account for the activities of its police and street departments. Revenues for these funds derive from the following sales taxes:
1% of levy dedicated for constructing, re-surfacing, lighting and Improving public streets, sidewalks and bridges; constructing, purchasing, improving, maintaining and operating recreation facilities and equipment; constructing, acquiring or improving land, buildings and any work of permanent public improvement. Including equipment and furnishings thereof; and installing and operating sewer and water systems including disposal plants, lagoons, etc., title to which shall be in the public.
17
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Special Revenue Funds (Continued) 1% of levy dedicated to maintenance and operation of the police department including acquisition of vehicles and equipment. On October 22. 2011, this sales tax was renewed for another 25 years.
%% of levy dedicated for the purpose of all sewer maintenance and operations. This portion is deposited in the Utility Fund where sewer operations are accounted for.
The Street Fund is also funded by an ad valorem tax passed on July 21, 2002. for ten years at an adjusted rate of 4.17 mills dedicated to improving and maintaining streets.
Proprietary Fund The Town also reports a proprietary fund which is used to account for the water and sewer services It provides to the residents and businesses ofthe Town.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989. generally are followed in both the govemment-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Govemmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The Town has elected not to follow subsequent private-sector guidance.
As a general mle, the effect of interfund activity has been eliminated from the govemment-wide financial statements. Exceptions to this general mle are payments in-lieu-of taxes and other charges between the govemment's enterprise operations. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Principal operating revenues for the Town's proprietary funds consist of charges to customers and users of its water and sewer services. Operating expenses for the Town's proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
18
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Budgets and Budgetary Accounting Annual budgets are adopted on a basis consistent with accounting principles generally accepted for all government funds. All annual appropriations lapse at fiscal year-end. The Town does not utilize encumbrance accounting. All proposed budgets must be completed and submitted to the Town Council no later than fifteen days prior to the beginning of each fiscal year. The operating budget includes proposed expenditures and the means of financing them. The final budget must be adopted before the ensuing fiscal year begins.
The Town adopted a budget on a basis consistent with generally accepted accounting principles for the following funds: General Fund and each Special Revenue Fund. At the end of the fiscal year, unexpended appropriations of these funds automatically lapse. The Town follows these procedures in establishing the budgetary data reflected in this statement:
(1) The Mayor, Board of Aldermen, Town Clerk, and other advisory personnel assemble the necessary financial information. The Mayor submits the infonnation for review to the Board of Aldermen at least 45 days prior to January 1®* of the following year.
(2) A public hearing is conducted to obtain taxpayer comments.
(3) Prior to the beginning of the new fiscal year, the budget is legally enacted through passage of a resolution by the Board of Aldermen.
(4) The Mayor is authorized to transfer budgeted amounts among programs within a department, office or agency; however, any revisions that alter the total revenues and/or expenditures budgeted for any department, office, agency or fund must be approved by the Board of Aldermen.
Deposits and Investments Cash includes amounts in demand deposits.
Under state law, the Town may deposit funds In demand deposits, interest-bearing demand deposits, money market accounts, or time deposits with state banks organized under Louisiana law and national banks having their principal offices in Louisiana. The Town may invest in United States bonds, treasury notes, or certificates. These are classified as investments if their original maturities exceed 90 days; however. If the original maturities are 90 days or less, they are classified as cash equivalents. In accordance with state law, alt uninsured deposits of municipal funds in financial institutions must be secured with acceptable collateral valued at the lower of market or par. The Town was in compliance with the deposits and investment laws and regulations.
Cash and cash equivalents consist of cash, as defined above, including restricted cash.
19
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Deposits and investments (Continued) Short-temn investments are stated at amortized cost, which approximates market. Certain investments, as required by GASB Statement No. 31, are reported at fair value, which is determined using published maricet prices.
Accounts Receivable Outstanding balances between funds that are representative of lending/bon-owing arrangements outstanding at the end of the fiscal year are referred to as "due to/due from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the govemment-wide financial statements as "internal balances."
Uncollectible amounts due for customers' utility receivables and ad valorem taxes are recognized as bad debts through the establishment of an allowance account at the time information becomes available, which would indicate the uncollectability of the particular receivable. The allowance was $4,000 for utility receivables and $25,570 for ad valorem taxes receivable at December 31, 2011.
Capital Assets Capital assets, which include property, plant and equipment, are reported in the applicable govemmental or business-type activities columns in the govemment-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical costs are not available. Donated assets are recorded as capital assets at their estimated fair mari<et value at the date of donation. The Town maintains a threshold level of $2,500 or more for capitalizing capital assets.
The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend the assets' lives are not capitalized.
Capital outlays are recorded as expenditures in the governmental fund financial statements, and they are recorded as assets in the government-wide financial statements to the extent the Town's capitalization threshold Is met. In accordance with GASB Statement No. 34, the Town is a Phase III govemment and, as such, is not required to capitalize its infrastructure retroactively. The Town has elected to record Its infrastructure on a prospective basis. The Town has capitalized its water and sewer infrastructure. The Town capitalizes interest on construction in its proprietary funds. Capital outlays of the proprietary funds are recorded as fixed assets and depreciated over their estimated useful lives on a straight-line basis on both the funds basis and the govemment-wide basis.
20
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Capital Assets (Continued) All capital assets, other than land, are depreciated using the straight-line method over the following useful lives:
Estimated Description Useful Lives Infrastructure 40 Years Buildings and Improvements 15-40 Years Water and Sewer System 30 Years Furniture and Fixtures 7 Years Vehicles 5 Years Machinery and Equipment 5-15 Years
Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term obligations are reported as liabilities in the applicable governmental activities or proprietary fund type Statement of Net Assets. Bond premiums and discounts, as well as issuance costs, are defered and amortized over the life of the bonds using the effective Interest rate method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as defen-ed charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the cun-ent period.
Fund Equity
Government-Wide and Proprietary Fund Statements
Equity is classified as net assets and displayed in three components:
1. Invested in capital assets, net of related debt - Consist of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bon-owings that are attributable to the acquisition, construction, or improvement of those assets.
2. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested In capital assets, net of related debt."
3. Restricted net assets - Net assets with constraints placed on their use either by:
a. External groups, such as creditors, grantors, contributors, or laws or regulations of other governments, or
b. Law through constitutional provisions or enabling legislation.
When an expense is incun'ed for purposes for which both restricted and unrestricted net assets are available, the Town's policy is to apply restricted net assets first.
21
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Fund Equity (Continued)
Governmental Fund Statements
Governmental Fund Statements - During the fiscal year ended December 31, 2011. the Town adopted GASB 54. Fund Balance Reporting and Governmental Fund Type Definitions, which significantly changed the reporting of fund balances in the balance sheets of govemmental funds.
In the governmental fund financial statements, fund balances are classified as follows:
1. Restricted Fund Balance - amounts that are restricted to specific purposes imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments.
2. Unassigned Fund Balance - all amounts not included in other spendable classifications.
Interfund Transactions Pennanent re-allocation of resoijrces between funds of the Town is classified as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between Individual governmental funds have been eliminated.
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from those estimates.
Compliance with Debt Covenants As of December 31, 2011, the Town was in compliance with all Sewer Revenue Bond and Certificates of Indebtedness Covenants.
Note 2. Cash and Cash Equivalents
At December 31, 2011, cash and cash equivalents were as follows:
Carrying Bank Amount Balance
Demand Deposits $1,336.164 $1.403.264
22
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 2. Cash and Cash Equivalents (Continued)
Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the Town's deposits may not be returned to it. The Town does not have a deposit policy for custodial credit risk. As of December 31, 2011, $1,153,264 of the Town's bank balance of $1,403,264 was exposed to custodial credit risk. However, these deposits are secured from risk by the pledge of securities owned by the fiscal agent bank. These securities are being held in the name of the pledging fiscal agent bank in a custodial bank that is mutually acceptable to the Town and the fiscal agent bank.
Under state law, deposits must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities, plus the federal deposit insurance, must at all times equal the amount on deposit with the fiscal agent. The custodial bank must advertise and sell the pledged securities within 10 days of being notified that the fiscal agent has failed to pay deposited funds upon demand.
Note 3. Receivables
Net receivables of governmental funds at December 31, 2011. were as follows:
Ad Valorem Taxes Sales Taxes Other Receivables
Total
General Fund
$ 86,283
50.954
$137,237
Police Fund
$ -43,561
$ 43.561
Street Fund
$ 58.617 43,561
$102,178
Total $144,900
87,122 50,954
$282,976
Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable.
Note 4. Ad Valorem Taxes
Property taxes are normally levied and billed in December of each year and are delinquent on January 1®* of the following year. Revenues are recognized when levied to the extent they are determined to be currently collectible. The Town bills and collects Its own property taxes using the assessed values determined by the tax assessor of St. Tammany Parish. For the year ended December 31, 2011, property taxes levied were 5.83 mills for general purposes and 4.17 mills for street improvement.
23
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 5. Capital Assets
The following is a summary of the changes in capital assets for the year ended December 31, 2011:
Governmental Activities
Capital Assets Not Being Depreciated Land
Capital Assets Being Depreciated Infiastructure Buildings and Improvements Machinery and Equipment Fumiture. Fixtures and Office Equipment Vehicles
Total Capital Assets Being Depreciated
Less Accumulated Depreciation for: Infrastructure Buildings and Improvements Machinery and Equipment Fumiture. Fixtures and Office Equipment Vehicles
Total Accumulated Depreciation
Total Capital Assets Being Depreciated, Net
Balance January 1,
2011
$ 104,377
578.812 354,035 671,357
46,736 324.307
1,975,247
(85,527) (193.968) (462.469) (48,165)
(142.261)
(932.390)
1,042.857
Capital Assets, Net $1.147,234
Depreciation was charged to governmental functions
General Govemment Public Works Public Safety Recreation
Total
Increases
$
-
(23,251) (6,201)
' (44,501) (6,677)
(49,155)
(129,785)
(129.785)
$(129,785)
> as follows:
$
Decreases
$
(33.912)
(28.715)
(62.627)
33.912
24,768
58,680
(3.947)
$ (3.947)
35,504 58.617 21,938 13,726
129,785
Balance December 31,
2011
$ 104.377
578.812 354,035 637,445 46,736
295,592
1.912,620
(108.778) (200.169) (473,058) (54,842)
(166.648)
(1.003,495)
909,125
$ 1.013.502
24
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 5. Capital Assets (Continued)
Business-Type Activities
Capital ^ s e t s Not Being Depreciated Land
Capital Assets Being Depreciated Water System and Equipment Sewer System and Equipment Machinery and Equipment
Total Capital Assets Being Depreciated
Less Accumulated Depreciation for: Water System and Equipment Sewer System and Equipment Machinery and Equipment
Total Accumulated Depreciation
Total Capital Assete Being Depreciated, Net
Capital Assets, Net
Balance January 1,
2011
$ 68,609
3.696.563 4.580,532
187,958
8,465.053
(1.022,966) (2.814.475)
(188.304)
(4,025,745)
4.439.308
$4,507,917
Increases Decreases
$ - $ -
44.473
24,980
69,453
(186.619) (102.645) (14.590)
(303,854)
(234,401)
$(234,401) $
Balance December 31,
2011
$ 68,609
3,741,036 4.580,532
212,938
8,534.506
(1.209.585) (2,917.120)
(202.894)
(4.329,599)
4,204,907
$ 4.273.516
25
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 6. Restricted Assets
On October 1, 1998, the Town issued $1,050,000 of Utility Revenue and Refunding Bonds, which were used to refund the remaining balance payable of the 1989 Utility Revenue Bonds, as well as provide funds for additional improvements to the water system. The restrictions related to the 1989 Bonds have been replaced with the following requirements providing for certain restrictions of assets of the proprietary fund:
1. Revenue Bond Sinking Fund The requirement calls for the establishment and maintenance of a Sewer Utility Revenue Bond and Sinking Fund sufficient to pay promptly and in full the principal of and the interest on bonds authorized as they become due and payable. This requirement has been met at December 31, 2011.
2. Revenue Bond Reserve Fund On October 1. 1998. the Town deposited the "Reserve Requirement" into the Reserve Fund. The sole purpose of this fund is to pay the principal of and the interest on the bonds payable from the Revenue Bond Reserve Fund as to which these would otherwise be in default. This requirement has been met at December 31. 2011.
3. Depreciation and Contingency Fund The resolution called for the establishment and maintenance of a Depreciation and Contingency Fund to care for depreciation, extensions, additions, improvements and replacements necessary to properiy operate the water system. Regular deposits of $400 per month are to be deposited with the regularly designated fiscal agent of the Town. This requirement has been met at December 31. 2011.
Note 7. Deferred Compensation
Certain employees of the Town participate in the Louisiana Public Employees' Deferred Compensation Plan (the Plan) adopted under the provisions of the Internal Revenue Code Section 457. Complete disclosures relating to the Plan are included in the separately issued audit report for the Plan, available from the Louisiana Legislative Auditor, Post Office Box 94397, Baton Rouge. Louisiana 70804-9397.
26
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 8. Long-Term Liabilities
The following is a summary of long-term debt transactions of the Town for the year ended December 31, 2011:
Bonds and Certificates at January 1,2011
Additions Bond and Certificate Payments
Bonds and Certificates at December 31,2011
Amount Due Within One Year
$
$
$
Utility Bonds
266.461
(85,411).
181,050
88,691
Certificate of Indebtedness
$ 155,978
(36,819)
$ 119,159
$ 38,233
$
$
_A
Total
422,439
(122,230)
300.209
126,924
The following is a summary of long-term liabilities of the Town for the year ended December 31. 2011:
$1,050,000 Utility Bonds dated January 1,1998, due in annual installments of $95,633, with interest of 3.84% per annum through October 1,2013, secured by the revenues of the proprietary fund. $ 181.050
$350,000 Certificate of Indebtedness dated March 1. 2004, due in annual installments, with semi-annual interest payments at 3.84% per annum through March 1.2014, secured by the revenues of the proprietary fund. 119,159
Total $ 300,209
27
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 8. Long-Term Liabilities (Continued)
The future debt service requirements of the revenue bonds and certificates are as follows:
2012 2013 2014
Total
Revenue Bonds Principal
$ 88,691 92.359
$ 181.050
Interest
$ 6,941 3.537
$ 10,478
Revenue Certificates Principal Interest
$ 38,233 39,701 41.225
$ 119.159
$ 4,576 3,108 1,583
$ 9,267
Total Prindpal
$ 126,924 132,060 41.225
$ 300,209
Interest
$ 11.517 6,645 1.583
$ 19,745
Note 9. Interfund Receivables/Payables
Due from/to other funds at December 31.2011. were as follows:
Fund Interfund
Receivables Interfund Payables
General Fund Special Revenue Fund
Police Street
Proprietary Fund
Total
$ 173,826 $ 110,005
281,097 69,023
420 275,475
$ 454.923 $ 454,923
The above due from/to other funds were short-term receivables or payables resulting from the normal course ofthe Town's operations.
28
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 10. Interfund Transfers
Operating transfers between funds occur in the normal course of business and were as follows during the year ended December 31, 2011:
Transfers Out: General Fund Street Fund Proprietary Fund
Total
$
$
General Fund
35.112 18,129
53.241
$
A.
Transfers In: Street Fund
7,528
7,528
$
J_
Police Fund
203,873 471
30,058
234,402
Proprietary Fund
$
J_
-
-
-
$
J_
Total
203.873 35.583 55,715
295.171
Note 11. Cash Flows Disclosure
During the year ended December 31. 2011, the Town's proprietary fund paid interest of $16,212 which was expensed.
Note 12. Pension Plan
All full-time police department employees engaged in law enforcement who are no participating in another retirement system are required to participate in the Municipal Police Employees' Retirement System of Louisiana (the System). Employees who retire at or after age 50 with at least 20 years of creditable service or at or after age 55 with at least 12 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3/4% of their final-average salary for each year of creditable service. Final-average salary is the employee's average salary over the 36 consecutive joined months that produce the highest average. Employees who terminate with at least the amount of creditable service, and do not withdraw their employee contributions, may retire at the ages specified previously and receive the benefit accrued to their date of temiination. The System also provides death and disability benefits. Benefits are established by state statute.
The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Municipal Police Employees' Retirement System of Louisiana, 7722 Office Park Boulevard, Baton Rouge, Louisiana 70809-7601, or by calling (225)929-7411.
29
TOWN OF PEARL RIVER, LOUISIANA
Notes to Financial Statements
Note 12. Pension Plan (Continued)
Members of the System are required by state statute to contribute 7.5% of their annual covered salary and the Town of Peari River. Louisiana is required to contribute at an actuarially determined rate. The current rate is 26.50% of annual covered payroll. The contribution requirements of System members and the Town of Peari River, Louisiana are established and may be amended by state statute. As provided by Louisiana Revised Statue 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The Town of Peari River, Louisiana's contributions to the System for the years ending December 31. 2011. 2010, and 2009, were $13,973, $15,131. and 10,428, respectively, equal to the required contributions for each year.
Note 13. Risk Management
The Town is exposed to various risks of loss related to torts; theft of. damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During the year ended December 31, 2011, the Town carried insurance through various commercial carriers to cover all risks of loss, except for the risk of loss of assets relating to certain vehicles and equipment. The Town has no settled claims resulting from these risks that exceeded its commercial coverage in any of the past three fiscal years.
30
TOWN OF PEARL RIVER, LOUISIANA Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual - General Fund For the Year Ended December 31,2011
Schedule 1
Revenues Taxes
Franchise Ad Valorem Taxes
Fines and Forfeitures Ucenses and Permits Insurance Licenses Other Revenues Interest Income
Total Revenues
Expenditures General Govemment
Salaries Beautification Aldermen Insurance Professional Fees Repairs and Maintenance Veterans Memorial Museum Miscellaneous Utilities Office Retirement Animal Control Health Insurance Payroll Taxes Vehicle Workmen's Compensation Dues and Convention Council Clerk Senior Citizen
Recreation
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Otiier Financing Uses Operating Transfers Out
Total Other Financing Uses
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Original Budget
$ 110.000 70,000
350,000 117,000 120,000 11.000
-
778,000
112.000 45,000 54,000 23,832 47,200 31.879 10,000 5,000
153,720 15,000 29,000 10,000 9.000
160.000 8.478 3.500
778 6.000 3.600 3.600
85.000
816,587
(38.587)
(61.413)
(61.413)
$ (100,000)
Final Budget
$ 120.000 76.693
173.720 127.000 110.000 11,587
-
619.000
110,000 15,000 48,000 23.832 46.000 15.000 3.000 5.000
52.299 30.000 28.000 10.000 9,000
123,000 8,478 1,000
778 6.000 3,600 3.600
20.000
561.587
57.413
(57.413)
' (57,413)
$
Actual Anwunts
$ 163,775 75.702
330.202 113.693 120.350
8.527 301
812,550
123,227 15,634 48,500
110,200 52,604 8.670
900 2.018
39.433 54.301 26.976 11.019 9.600
15.895 9,548 1,137 3,032 9,.'S64 3,600
383 42,630
588,871
223.679
(150,632)
(150.632)
73.047
134,022
? 207,069,
Variance with Final Budget
Favorable (Unfavorable)
$ 43.775 (991)
156,482 (13,307) 10,350 (3.060)
301
193,550
(13.227) (634) (500)
(86,368) (6,604) 6,330 2.100 2,982
12.866 (24.301)
1,024 (1.019)
(600) 107.105
(1.070) (137)
(2.254) (3.564)
3,217 (22.630)
(27.284)
166.266
(93.219)
(93,219)
$ 73.047
32
TOWN OF PEARL RIVER, LOUISIANA Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual - Police For the Year Ended December 31, 2011
Schedule 2
Original Budget
$ 650.000 48,000
-
Final Budget
$ 500,000 48.000
-
Actual Amounts
$ 498,840 71.814
16
Variance with Final Budget
Favorable (Unfavorable)
$ (1.160) 23,814
16
Revenues Sales Taxes Grants and Reimbursements Interest Income |
Total Revenues
Expenditures Public Safety
Salaries Health Insurance Gas and Oil Payroll Taxes Repairs and Maintenance Workmen's Compensation Communications Office Insurance Retirement I\^scellaneous Training Prisoner Meals Court Expense
Total Expenditures
Deficiency of Revenues Over Expenditures
Other Financing Sources Operating Transfers In
Total Other Financing Sources
Net Change In Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
698,000 548.000 570,670
^79.090 -
70.000 38.900 16.000 31,003 18.000 8,000
27,120 45.300 25,000
6.000 8,000 2,000
424.190 -
63.000 38.900 16.000 31,003 10.900 8,000
25.120 45,300 15.000-6.000 3,000 2.000
479,875 68.231 52,193 44,579 14,945 28,815 19,608 14,654
-44,304 11,675 9.518 2.000
25
$ (15.000) $ (35.000) 14,650 J ^
10.738
$ 25.388
22.670
(55,685) (68,231) 10.807 (5.679) 1.055 2.188
(8.708) (6.654) 25.120
996 3,325
(3.518) 1.000
2.000
774,413
(76.413)
61.413
'61.413
2.000
688.413
(140.413)
105.413
105.413
25
790.422
(219.752)
234,402
234.402
1.975
(102.009)
(79,339)
128.989
128.989
49.650
33
TOWN OF PEARL RIVER, LOUISIANA Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual - Street For the Year Ended December 31, 2011
Schedule 3
Variance witii Final Budget
Revenues Taxes
Sales Taxes Ad Valorem Taxes
Grants Other Revenues Interest Income
Total Revenues
Expenditures Public Works
Salaries Capital Outlay Equipment Repairs and Maintenance street Lights Insurance Workmen's Compensation Payroll Taxes (3as and Oil Retirement Supplies Miscellaneous
Total Expenditures
(Deficiency) Excess of Revenues Over Expenditures
other Financing Sources Operating Transfers In
Total other Financing Sources
NetCiiange in Fund Balance
Fund Balance, Beginning of Year
Fund Balance. End of Year
Original Budget
$ 650,000 40,000
426,550 5.000
-
1.121.550
330,510 774.301 60.000 40,000 10,000 36.120 23.592 10,000 15.027 6.000
16,000
1,321.550
(200.000)
-
$ (200.000)
Final Budget
$ 600.000 40,000 6,550 ,5,000
-
651.550
330.510 214,301 60,000 40.000 10.000 36,120 23,592 10,000 15,027 6,000
16,000
761.550
(110,000)
.
$(110,000)
Actual Amounts
$ 498.840 49.819
148,962 17.178
251
715.050
257,988 -
82.531 46.542 36.328 31.333 20,488 17.946 12,725 11.179 6.92b
523,986
191.064
(28,055)
(28.055)
163.009
426,387
$ 589,396
Favorable (Unfavorable)
$ (101.160) 9.819
142.412 12.178
251
63,500
72.522 214,301 (22,531) (6.542)
(26,328) 4.787 3.104
(7.946) 2.302
(5.179) 9.074
237.564
301.064
(28.055)
(28.055)
$ 273.0U9
34
TOWN OF PEARL RIVER, LOUISIANA Proprietary Fund Schedule of Operating Expenses For the Year Ended December 31, 2011
Other Supplemental Information Schedule 4
Administrative and General Expenses Salaries Health Insurance Payroll Taxes Office Expense Retirement Workmen's Compensation Education and Training Bank and NSF Charges
Total Administrative and General Expenses
Sewer System Expenses Utilities Chemicals Repairs and Maintenance Other Lab Testing
Total Sewer System Expenses
Water System Expenses Salaries Water IVleters and Hydrants Repairs and Maintenance
Total Water System Expenses
26.149 14,246 8.245 6,858 3,789 2,524 1,758
455
$_
$
$
$
JL
64.024
138,192 20.927 20,053 12,967 6.603
198.742
75.021 12,540
637
88,198
36
TOWN OF PEARL RIVER, LOUISIANA Schedule of Compensation Paid to the Members ofthe Board of Aldermen For the Year Ended December 31, 2010
Other Supplemental Information Schedule 5
Board of Aldermen Term of Office Compensation
David McQueen P.O. Box 371 Pearl River, LA 70452 (985)863-2176
Marie Crowe 35190 Highway 3081 Pearl River, LA 70452 (985) 863-9373
Kathryn Walsh 39208 Gum Street Pearl River, LA 70452 (985) 863-2254
Ruby Gauley 39107 McQueen Road Pearl River, LA 70452 (985) 863-7258
Ella Brakefield P.O. Box 1514 Pearl River, LA 70452 (985) 863-5438
December 31. 2014 $ 9,600
December 31,2014
December 31, 2014
December 31. 2014
December 31, 2014
$ 9,600
$ 9,600
$ 9,600
$ 9,600
37
LaPortc, APAC J L A x O R T E 5100 Village Walk 1 Suite 300
CPA> s BUSINESS Aovtsons Covington, LA 70433 985.892.5850! Fax 985.892.5956
LaPortc.com
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the Board of Aldermen Town of Pearl River, Louisiana
We have audited the accompanying financial statements of the governmental activities, the business-type activities, and each major fund of the Town of Pearl River, Louisiana (the Town), as of and for the year ended December 31, 2011, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated June 18, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America.
Internal Control Over Financial Reporting
In planning and perfomning our audit, we considered the Town's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses and, therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and responses, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness.
A deficiency in intemal control exists when the design or operation of a control does not allow management or employees. In the normal course of perfonning their assigned functions, to prevent, or detect arid correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency described in the accompanying schedule of findings and responses as item 2011 -1 to be a material weakness.
NEW Oi^LEANS HOUSTON BATON ROUGE COVINGTON
An Independently Owned Member, McGladrey Alliance The McOodroy Aliiaico b s pnemiu tff&jlion c* imieparximi arooureirig Dnd conauKing *rrw. O Q Tho tAcOadmf Aifet>co menvbat fenvs majntan thetf nemo. auS-cnorrf and indepeiyiwico ofxl ore rc«pw«i i* j for Ihotf own c6ew lee arrangon^tmta. c * ^ ^ dtont loiolicnaKps,
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance that is required to be reported under Government Auditing Standards and are described as items 2011-2 and 2011 - 3 in the accompanying schedule of findings and responses.
The Town's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. We did not audit the Town's responses and, accordingly, we express no opinion on them.
This report is intended solely for the infonnation and use of the goveming board and management of the Town of Peari River, Louisiana, the Legislative Auditor of the State of Louisiana, and federal awarding agencies and pass-through entities, and is not intended to be, and should not be, used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.
A Professional Accounting Corporation
June 18. 2012
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